Welcome to this week’s analysis on which altcoins are performing well and which ones are not. You can view the list here:
Happy new year everyone! Hope you had restful holiday break and you’re feeling refreshed for what’s potentially coming up this year. Hopefully you are fully allocated to your positions by now for this year. I don’t expect to be making any other position changes until we take profits at the upcoming cycle top. The rest of this year will focus on monitoring for cycle top data, identifying any potential “buy the dip” opportunities if you still have capital becoming available and looking out for any other upcoming performers in case you choose to pursue those.
Bitcoin Update
Not much has changed since we covered this in the previous newsletter. Bitcoin is still in this same range between 90-100k. However I refreshed my Bitcoin Seasonality Index and compared this most recent price action and the correction could be close to being over. If you notice around January there tends to be a correction and it appears based on the recent drop from mid-December that we are already in the middle of this potential correction. I think by the end of this month we’ll know if Bitcoin breaks above it’s all-time high then I don’t see any next major top until around April or May.

There is still a chance Bitcoin falls to 85k so just calling this out as a potential scenario but even if it does, I’m not that worried for altcoins because they have been showing incredible strength especially the ones we hold in the portfolio.

Bitcoin Dominance Update
Bitcoin Dominance is still following one of the scenarios I presented from the last newsletter where the rejection from the trendline is resulting in a potential new downtrend. Now that the weekly has closed below 58%, there is a strong possibility we continue lower from here. It’s possible we have a bounce higher to re-test 58% before continuing lower.

OTHERS Dominance 2 Week Z-Scores
The potential bottom is still intact for OTHERS Dominance which suggests altcoin strength will continue and altcoin mid caps and small caps will outperform Bitcoin in the coming months. I also added a trendline to the previous highs and if this pattern continues, we could potentially see this go to 24-25%.

Altcoin Top Indicator 2 Week RSI
I am monitoring for the Altcoin cycle first and second tops which has been identified with 2-Week RSI reaching over 90 with the first top and then forming a lower high with the second top. We still haven’t seen this trigger for the first top so I’m expecting more upside from here.

Solana Update
I mentioned in the last newsletter “Even with this drop, we see that this appears to be a retest of its previous bull flag breakout from November. I still think Solana goes higher from here and is a great buying opportunity and likely the last chance.” Now Solana is back above $200 and is ready to re-test it’s all-time high again. I hope you didn’t get shaken out and treated this as a buying opportunity.

Also in the last newsletter I said “Even with this recent drop, this major support level for SOL/ETH is still intact. I’m expecting SOL to outperform ETH through next year.” We had a firm bounce off this major level and I expect this to go higher.

Finally, let’s cover Solana vs. Bitcoin. We can see that Solana is still keeping pace with Bitcoin and once this breaks above this descending trendline, we should start to see massive outperformance again from Solana.

Dogecoin Update
Dogecoin had a 45% drop from its recent high and has already done a nice bounce back up to its previous range of 0.37-0.48. I am still expecting a lot more upside for Dogecoin

Let’s go through a refresh of all of the Dogecoin indicators. First we have “Dogecoin 2 Week RSI” which helps us identifies the first and second tops and still no RSI cross into 89.

The next indicator I have is called “Dogecoin Z-Scores Weekly” and this model suggests the first top is still not in.

Finally, we have “Dogecoin MVRV Z-Scores Weekly” and still no first top has triggered for this either.

Large Caps
For large caps, here’s the ones that stand out on a long term timeframe:
- Sui
- Dogecoin
- XRP
- Stellar
- Hedera
Sui continues to show considerable strength and is still the best performing Large Cap lately. It outperforms Solana in the last 180 days by 406% and in the last 365 days by 172%.
I covered Dogecoin earlier but it was a great buy in the last newsletter but now that it is higher in its range, the buy window is closing.
The remaining coins are XRP, Stellar and Hedera which as I mentioned in previous newsletters, I would not advise buying.
Here’s the ones that stand out on a short term timeframe:
- Hedera
- Stellar
- XRP
- Chainlink
XRP, Stellar, Hedera and Chainlink make the short term list also but again I’m cautious on these for the reasons mentioned in previous newsletters.
To avoid repeating myself, I am not planning to cover these coins any further as the chances of them outperforming other coins we have in the portfolio is very low.
Model Portfolio Update
The model portfolio is now up over 50% since we made the position changes from the last newsletter:

I pointed out which coins are still in a decent buy zone so be sure to review those if you are still looking to allocate. Otherwise, we sit tight and let the cycle play out monitoring for the cycle top data to trigger.
To see the detailed analysis on this as well as the updated portfolio, sign up and become a pro today and gain an edge in the crypto market.
Not financial advice. Please consult a financial advisor before making any investment decisions.
